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Obama Uses His Press Conference to Set a Tax Cut Trap for House Republicans
President Obama used his press conference in order to set a trap for House Republicans that will leave them in a lose/lose situation on the Bush tax cuts.
President Obama was asked about caving on Bush tax cuts in 2010, and why Republicans and the American people should believe him that he won’t cave again. Obama answered that the economy was in a different situation two years ago. He mentioned the unemployment tax and payroll tax cut extensions, but as he said back then this was a one time only proposition. We cannot afford to extend the Bush tax cuts for the wealthy but we can make sure middle class taxes don’t go up. Obama prodded Republicans again to immediately pass tax cuts for 98% of individuals and 97% of small businesses. The president said we have to look at entitlements. Obama said, “When it comes to the top 2% what I am not going to do is extend a tax cut for folks who don’t need it.” The president added that we can’t afford to spend $1 trillion on tax cut for the rich, and the math doesn’t add up when it comes to just closing loopholes. Obama said that the issue was debated extensively during the election, and the majority of Americans agreed with him. The president said he wanted a big deal, a comprehensive deal.
Later on, Obama was asked if the Clinton tax rates are the bottom line, and if there would be no deal if tax rates did not go back to Clinton era levels. The president answered, “I am open to new ideas.” He continued, “If Republicans or Democrats have new ideas to raise revenue, reduce the deficit, protect the middle class, I am not going to slam the door in their face.” The president recognized that we will have to compromise, but what he won’t do is have a process that is vague that will sort of, kind of raise revenue. Obama said he does not want to find the country in a situation where the wealthy don’t pay as much as they should, and middle class folks are bearing the burden.
The president made it clear that he wants the Bush tax cuts for the wealthy gone. As far as raising revenue, the president repeatedly said that he is open to new ideas from all sides.
Some on the left hear this kind of talk and immediately freak out, but this is a strategic move on the part of the White House. By opening the door to new ideas from all sides, the president is putting the ball in the House Republicans’ court. He is forcing them get serious about cutting a deal. Obama’s offer isn’t a display of weakness.
The president is setting a trap.
He understands the results of the election. The American people want moderation and compromise. Obama is setting the GOP up to either give the American people what they want, or be held responsible for a deal not being reached. Obama repeatedly mentioned the middle class, and said that he has a middle class mandate.
Obama has been beating House Republicans for a year by defending the middle class. The president defeated Mitt Romney by being a champion for the middle class, and now he is setting up the same dynamic and daring House Republicans to defend the rich. This is a familiar strategy from Obama, and it works.
If Republicans refuse to budge on taxing the rich, they will fall right into the president’s trap. House Republicans are in a lose/lose situation. If they defend the rich, all taxes will go up on the middle class. Should Republicans sacrifice the 98% for tax cuts for the rich, Obama warned that they could jeopardize the 2012 shopping season. Republicans will lose with their base if they cut the deal that Obama wants, and they will also lose if they sacrifice the middle class in order to defend the rich.
This isn’t 2010 anymore. Obama doesn’t have to run for reelection, and the president is poised to press his advantage to the max.
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35 Responses to Obama Uses His Press Conference to Set a Tax Cut Trap for House Republicans
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brigita Petrutis
Nov. 14th, 2012 at 2:29 pm
My favorite part: “They’ll still be wealthy!”
Sugapea
Nov. 14th, 2012 at 3:12 pm
Watch this wonderful President in action today:
www.whitehouse.gov/live
Jonathan Burton
Nov. 14th, 2012 at 4:14 pm
The wealthy have time and time again prospered by increasing their taxes to invest in the middle class. The middle class makes money for the wealthy everytime by being prosperous and spending money which further stimulates the economy and increases the profits and wealth of the upper class. This is true every time and it will be true this time too. The GOP forgets way too often how this all works and wants to continue pretending that trickle down works….it does not.
ibwilliamsi
Nov. 14th, 2012 at 7:06 pm
I don’t know if they forget it. I think that they’re petty and vindictive.
Rob Tomorrow
Nov. 14th, 2012 at 2:35 pm
I hope you are right.
The cards are in Obama’s hands, raise taxes on the rich or over the cliff we go!
I just hope he doesn’t fold, after the last round I wouldn’t be surprised.
Jason Easley
Nov. 14th, 2012 at 2:38 pm
I wouldn’t count on him folding. It isn’t 2010. Remember, in 2010 House Republicans were holding unemployment benefits hostage, unless they got their tax cut. As Obama said during the press conference, the economy is better and this is a different time. They are the ones who will be risking their hides if they say no, not Obama.
Middle Molly
Nov. 14th, 2012 at 4:35 pm
I’m very frustrated that many people don’t remember WHY the Prez had to give in to the Repubs on those Bush tax cuts: We had five million people on state extended benefits or on federal extended benefits (the “tiers”). That number, while still high, has been cut in half.
The number of the unemployed was over 15 million in November 2010, now we are down to 12 million, still high but not anything like 2010.
As a family who needed those extended unemployment benefits, I didn’t think that the Prez “caved” at all; I felt that he acted humanely for millions of Americans.
RMuse
Nov. 14th, 2012 at 2:37 pm
This is what a big win looks like. The President has the people and Republicans have the wealthy. I know the GOP hates math, but 98% is greater than 2% and President Obama knows it.
Tom
Nov. 14th, 2012 at 2:52 pm
The President sounded completely different today. He got in a lot of zingers, sounded like he knows he won and he’s in charge. Elections have consequences!
RoughAcres
Nov. 14th, 2012 at 2:37 pm
THIS was the headline you went for?
A lot came up in that press conference. The tone was not as adversarial as your headline would make it seem.
Rob
Nov. 14th, 2012 at 3:02 pm
Setting a tax cut trap is the opposite of “adversarial”. Even the definition of the two terms is near opposite. One thing that the President has done very well, politically, since he took office is give the opposition just enough rope to hang themselves with. This is just another example of the President saying all he needs to say and setting up a situation that forces the GOP to give him what he wants and if they don’t, they take the blame. Unfortunately, the GOP may take the blame, but it is the entire country that feels the effects.
K
Nov. 14th, 2012 at 3:01 pm
The emphasis was on the MIDDLE CLASS. How are they suffering?
The truth is that they ARE NOT. It’s the working poor, disabled and elderly that will. It’s those who need entitlements to survive, yes FOOD STAMPS who will suffer. It’s interesting that not one question was asked on what entitlements would be cut, just that they would be. But by how much?
The Grand Bargain, to some extent is still on the table. ALL entitlements will be SLAMMED and all of this will ride on the backs of the working poor, the unemployed, the disabled and the elderly.
Which brings me to a resolution also not discussed. Since it appears that there will be SEVERE cuts in entitlements, of which the middle class has nothing to do with, what about education? Millions of people are still out of work. Those that can find jobs are working at minijmum wage, sometimes two to three jobs to support their families. We need an educational system that allows people to learn new career skills so they are employable. We need to jobs created so that those skills can be put to good use. For all the pontificating that the Republicans have been doing about how their tax cuts create jobs, let me ask you. WHERE ARE THEY? If this were true, in the last twelve years, NO ONE would be without a job and this economy would prosper.
What people tend to forget is that those receiving entitlements, no matter what they are, are also CONTRIBUTING to the economy. This is why EBT cards can be used at Grocery stores, walmart, Walgreens, etc. Now WHY is that? They also put gas into their cars to get to work. Gas taxes, sales taxes, etc. And those working poor, also pay into social security. the baby boomer generation is now accessing SS. There will be LOTS more. The retirement age will be raised to 70. Who stays healthy THAT long? In that case, more will apply for SS due to disability. This is far from fixed. But I guarantee it will all on the backs of those I have mentioned.
Middle Molly
Nov. 15th, 2012 at 12:40 am
Just curious, but where are you reading that the social security full retirement age will be raised to 70?
As people head into their upper 50′s or early 60′s, they are generally less able. I would think that most people are disturbed by how less able they are by the time they hit 60. Those who have physically demanding jobs are (or will be) cut out as soon as their companies are able to move them to the pasture.. usually with no pension and no severance.
This IS why the number of people seeking disability is going up. Most people in their upper 50′s and early 60′s who are doing physically active work are finding that they simply can’t do the same kind or amount of work. I know dozens of people in this situation.
And of people who are in their upper 50′s or 60′s who do desk work.. well, if they are laid off or need to quit their jobs, they simply are not getting hired. And it’s likely that, even with a more robust economy, they still won’t be hired.
TonyKo
Nov. 14th, 2012 at 3:12 pm
Yes . . .
“Proceed, Governor.”
Jo Hargis
Nov. 14th, 2012 at 4:48 pm
Dernit. I was about to type exactly that. /gritch
Shiva (Moderator)
Nov. 14th, 2012 at 5:01 pm
watch your language young lady
clarence swinney
Nov. 14th, 2012 at 3:41 pm
WHY THE DEBT?
In 2000, We had revenue of 20% and spending 18% of GDP. Surplus.
In 2009, we had 15% of Revenue and 25% of spending as % of GDP.
That was an increase in Spending and decline in Revenue.
Bush policies. How will historians rate his administration?
Michael Linder credits Bush with 86% of debt increase and Obama 14%
Ken
Nov. 14th, 2012 at 4:28 pm
Asa always when it comes to politics, the President seems to be playing three dimensional chess and others are playing checkers.
oldsneekers
Nov. 14th, 2012 at 4:40 pm
Through the 1970′s and early 1980′s the upper 1% taxable income was 8 x the median income; in the early 1990′s it was 12-14 x the median income by the late 1990′s it shot up to 20-26 x median income; in 2007 it was 30 times the median and since then has dropped to the mid 20′s.
The 95-99 percentile improved but no where near as dramatically rising from about 3 times median income to 5 times the median.
As a percentage of ALL income generated in the US the top 1% went from 8% in the 1970-1980s to 20% in 2008. The only other group to improve was the 95-99%’tile going from 12 to 14% of the total income generated. the 90-94percentile retained the same fraction of the total income while those below the 90′th percentile all fell.
Trickle down economics is a lie and those that promote it know it, they just don’t care.
Taxing the very rich reduces the amount of money going into the casino on Wall street, stabilizing markets and increases funds for general welfare and maintainence services, increasing employment.
Joyce Buchner
Nov. 14th, 2012 at 5:15 pm
Your tone is very negative, a trap sounds sneaky and underhanded which President Obama is not. He is presenting them a challenge and forcing their hand to actually do something for the people and the country instead of looking out for the greedy ultra rich who do not need looking out for.
Centered
Nov. 14th, 2012 at 6:09 pm
Enjoy these days because they are numbered. The Prince of Fools will drive the debt to $20B, more jobs will evaporate (due to Obamacare and other job-killing policies) and eventually he will raise taxes on everyone. The tax hike for “the rich” will not generate nearly enough revenue to offset the massive spending needed for his socialistic transformation. Maybe $80B per year and he needs a trillion?? The $80B wouldn’t even cover the month 1 of current fiscal year shortfall of about $120B. Hello?
Feel free to make negative comments about this lefties. In four years you will see the libs booted out of DC and state governments in droves. This happens every 30 years when the idealogues win an election. Then they are booed out of office for fiscal conservatives to clean up. (Just like the UK now – ask them about all of their entitlements and national health debacle).
Print this out and save it for 2016. It will happen unless Obama moves to the middle (ala Slick Willy).
1voice1vote
Nov. 14th, 2012 at 6:39 pm
“Hello?” Hello, Centered. I’ve heard that “fear is just excitement without breathing.” Perhaps a few deep breaths are in order, excitable Homo sapiens specimen.
galactusx
Nov. 14th, 2012 at 9:12 pm
The Prince of Fools has left the building courtesy of Barack Obama. Now lets go Forward.
Robert
Nov. 14th, 2012 at 11:34 pm
You were probably one of those people a few weeks ago that were claiming ‘Romney will win, mark my words’.
So your predictions don’t carry much weight… move along, nothing to see here.
be funk note
Nov. 15th, 2012 at 10:30 am
You probably said this same thing 4 years ago, lol. I’m sorry you live in such a terrible world, you should try entering the real world, it’s not so scary over here.
Centered
Nov. 14th, 2012 at 8:46 pm
Good one. 2016.
Evermore Jones
Nov. 14th, 2012 at 8:59 pm
Check your history, government spending is how you get out of recessions.
galactusx
Nov. 14th, 2012 at 9:10 pm
Our President is a genius and a political samurai! He has nothing to lose. Trust him.
Inez
Nov. 14th, 2012 at 9:30 pm
This was a knock down strategy for the Prez. I can imagine the hush over the Reps, they can’t believe that this “one time President” has boxed them into a corner. They best call Mitt for advice because they have no common sense for “business . No. ask Carl Rove he blew over $300,000,000.00 on the campaign to nowhere..”
Centered
Nov. 14th, 2012 at 11:56 pm
Oh so Greece is getting out of a recession. That explains it. I was confused about their strategy. Obama is Carter on steroids.
KatzKids
Nov. 15th, 2012 at 9:33 am
You seem to be confused about a great number of things. I generally feel sorry for the slow wits among us, but in your case I’ll make an exception. Here’s to 2014 & the demise of the House majority! LOL!
clarence swinney
Nov. 15th, 2012 at 6:36 am
RUNAWAY SPENDING
Dan Mitchell of Cato on CNCB ranted Obama runaway spending is like a run away train.
Dan is totally wrong. Spending is under best control in decades.
Major steps have been taken to control spending.
Obama Efficient Government Spending Programs and the Budget Control Act
produces $1500 Billion in savings in discretionary spending 2013 through 2022.
The reductions will shrink non-defense discretionary spending to the lowest level on record as a share of GDP, since 1962.
The Obama record will be to increase total spending by 2% to 8% from Bush last budget to his last budget in first term. He budgeted to spend 3800 in fiscal 2013 and if so that will be only 280B over Bush last budget. clarence swinney –part info from policy shop.net
be funk note
Nov. 15th, 2012 at 10:25 am
You know back in the day people in congress would sometimes start beating eachother with a cane or something if they disagreed. At this point I just feel like some of these Republicans just need a good ass kicking by Obama or other democrats in congress.
brigita Petrutis
Nov. 15th, 2012 at 11:32 am
Not that I condone violence, but the visual is great. (Liked it!)
Liberator
Nov. 15th, 2012 at 11:32 pm
Yes, all republicans should fear a good ass beating form the party that kills babies, promotes gay marriage and doesn’t believe in God. I guess according to Bidens wife, he has a big one, so I guess he could lead the fight.